A few simple questions on 13

[suddenly]

We need to file 13 because we are not eligible for 7 due to a 7 filing in 2001. A couple of years after filing, our son was diagnosed with a bone tumor. Insurance did not cover it's removal. I had a stroke, and we had to sell our home that we fought so hard to save, just to get by.
After renting for 18 months, we were approved for a mortgage and bought an old house right before the housing slump. We have an 80/20 mortgage with what most would consider to be a predatory rate and fees.
After 1 week in the house, my husband was laid off. He found another job after a few weeks, but makes less ($15000 or so). The good thing is that he loves his new job and hated his old one.
He has a car that he has had for 4 or 5 years, but the loan has been redone a few times. I have a car that I bought used last fall, and would like to surrender and get a beater. We also have a teen with a car in our name (beater). She needs it for school and work.
Questions...
We are behind on our mortgage, owe more than the home is worth, but still want to stay. How does this work?
Can I buy a $1500 car and surrender mine?
Can medical bills be included in bk 13? We have about $13,000 worth.
What about college money... can we set up a fund now so it is part of our expenses when we file? We have 2 teens and a 10 yo an no money saved for college.
Will my husband's car be considered over the time limit since we have owned it for so long or will we have to pay back the entire loan? (worth $4000, owe $9000 Wells Fargo)
Our credit card debt is less than $10,000, but since we are behind on this high interest mortgage, 13 seems our only option. Can an attorney have a mortgage restructured so the payments are more reasonable? Our interest only payments on the combines $273000 mortgages is $2500!
Thanks for any and all answers!

[tofargone]

A chapter 13 would work to save your home, and your car would most likely be crammed, or you could surrender. The only issue you may have is if you have $1500 laying around you are going to have to get that worked into an exemption ( an attorney should know for sure ). As for restructuring mortgage payments, I don't think you can force the mortgage company to restructure your loan. You may be stuck in what you have. All the other questions such as college funds and such are probably going to vary by region and trustee.

If you can afford the mortgage as is and still have enough to live and make a trustee payment ( if you are in the arears on your house that has to be paid in full in your payment.) you should be ok.

I would talk to an attorney to see what he suggests.

Good Luck

[HHM]

We are behind on our mortgage, owe more than the home is worth, but still want to stay. How does this work?

1st...you need to determine if you can afford to stay, i.e. would it be cheaper to rent, (even with the tax benefits of the Mortgage right off). But generally, in a chapter 13, your past due payments get rolled into your chapter 13 payment plan, but you still need to make your regular monthly mortgage payment, on time. If you miss a mortgage payment during your chapter 13, then the bank can foreclose.

Can I buy a $1500 car and surrender mine?

Yes, but you need to check your State's car exemptions before doing so.

Can medical bills be included in bk 13? We have about $13,000 worth.

Yes, medical bills are unsecured debt, just like any other unsecured debt.

What about college money... can we set up a fund now so it is part of our expenses when we file? We have 2 teens and a 10 yo an no money saved for college.

I am not sure you can count "college savings" as a monthly expense, but you can open some 529 accounts and put some money into those accounts to shelter it. But I don't think you can claim ongoing contributions as an expense.

Will my husband's car be considered over the time limit since we have owned it for so long or will we have to pay back the entire loan? (worth $4000, owe $9000 Wells Fargo)

Not quite sure what you asking here...if you want to keep the car, you have to keep making the payments, its as simple as that.

Can an attorney have a mortgage restructured so the payments are more reasonable? Our interest only payments on the combines $273000 mortgages is $2500!

The attorney cannot "force" a restructure onto the Mortgage Finance Co., but you can try to negotiate a Mortgage Workout Agreement. However, Mortgage Workout Agreements are not generally done concurrently with a chapter 13, an MWA, is usually done in lue of a chapter 13. But again, your mortgage company would have to agree to the MWA.

[suddenly]

Thanks so much for the replies. Will there be a problem with having the car for my daughter? Should I put it in her name?

[arkienurse]

Thanks so much for the replies. Will there be a problem with having the car for my daughter? Should I put it in her name?

Is she making the payments? We had 3 vehicles when we filed. One was a car that our son was making the payments on. They put in the plan that we were keeping it and an outside party was to make the payment. But we were old law also, not sure if new law affects that.